Just In Time

JIT

2
Just in Time Control System
 Just in Time Control System
• JIT, Lean Production, and Zero
Inventories:
 is a system of moving material
through a plant that requires a
minimum of inventory.
• JIT is an outgrowth of the Kanban
system developed by Toyota.
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Kanban
System
 Kanban System
• Kanban is Japanese word for card.
• May be a card, flag, verbal signal etc.
• Kanban system is:
An information system that is used
to control the flow of production.
Kanban System

16-7
 Kanban System
• Kanban authorizes production from
downstream operations:
‘Pulls’ material through plant.
• Used often with:
 Fixed-size containers
Add or remove containers to change
production rate.
 Kanban System
 Kanban card indicates standard
quantity of production.
 Production Kanban authorizes
production.
 Withdrawal Kanban authorizes
movement of goods.
Kanban System
Kanban System
 Kanban System
Kanban Finished Customer
goods order
Work
cell
Ship

Raw Kanban Final Kanban

Material assembly
Supplier
Kanban Kanban
Sub-
Purchased assembly
Parts Kanban
Supplier
The Kanban System
Receiving post
Kanban card for Storage
product 1 area
Kanban card for
product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
The Kanban System
Receiving post
Kanban card for Storage
product 1 area
Kanban card for
product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
The Kanban System
Receiving post
Kanban card for Storage
product 1 area
Kanban card for
product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
 The Kanban System
Receiving post
Kanban card for Storage
product 1 area
Kanban card for
product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
The Kanban System
Receiving post
Kanban card for Storage
product 1 area
Kanban card for
product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
The Kanban System
Receiving post
Kanban card for Storage
product 1 area
Kanban card for
product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
The Kanban System
Receiving post
Kanban card for Storage
product 1 area
Kanban card for
product 2

Empty containers

Assembly line 1

O2

Fabrication
cell
O1 O3
Assembly line 2

Full containers
O2
The Kanban
Container
 The Kanban Container
1. Each container must have a card.
2. Containers cannot be moved without a
kanban.
3. Containers should contain the same
number of parts.
4. Only good parts are passed along.
5. Production should not exceed
authorization.
 Double sided racks.

Variable size stackable

bins

Stacking bins, when top is empty, remove

and start using the bottom bin.
Double Sided Racks
Special twinbins, top holds second
inventory, when bottom is empty, pull
middle lever that allows top inventory
to drop into lower bin, flag pops up
identifying upper bin needs to be
refilled.
Determining the Number of
Kanban Cards or Containers
 Determining the Number of Kanban
Cards or Containers
• The number of kanban cards, or containers,
sets the amount of authorized inventory.
• To determine the number of containers
moving back and forth between the using area
and the producing areas:
Management first sets the size of each container.
• This is done by computing the lot size, using a
model such as the production order quantity
model
 Determining the Number of Kanban
Cards or Containers
• Setting the number of containers
involves knowing:
(1) Lead time needed to produce a
container of parts.
(2) The amount of safety stock needed to
account for variability or uncertainty in
the system.
 Determining the Number of Kanban
Cards or Containers
• The number of kanban cards is computed
as follows:
 Just in Time
Control System
 Just in Time Control System
Fundamental Ideas behind JIT
WIP inventory is reduced to a minimum.
JIT is a pull system.
JIT extends beyond the plant boundaries.
The benefits of JIT extend beyond saving of
inventory-related costs.
The JIT approach requires a serious
commitment from top management and
workers alike. 31
 Just in Time Control System
• Setup time and setup cost reduction
result in smaller lot sizes.
• Smaller lot sizes considerably decrease
investment in:
1. Raw materials,
2. Work-in-process
3. Inventories,
4. Finished goods inventories.
Reduce Inventory Level

Inventory level

Process
Scrap downtime

Setup Quality
time problems

Late deliveries
Reduce Inventory Level

Inventory
level

Process
Scrap downtime

Setup Quality
time problems

Late deliveries
 Reduce Lot Sizes
Q1 When average order size = 200
average inventory is 100
200 –
Inventory

Q2 When average order size = 100

average inventory is 50
100 –

Time
 Reduce Setup Times
Initial Setup Time 90 min —

Separate setup into preparation and actual setup, doing

as much as possible while the machine/process is
Step 1 operating
(save 30 minutes)

60 min —
Move material closer and
Step 2 improve material handling (save
20 minutes)
45 min —
Standardize and
Step 3 improve tooling (save
15 minutes)
25 min —
Use one-touch system to eliminate
Step 4
adjustments (save 10 minutes)
15 min —
Training operators and standardizing work 13 min —
Step 5 procedures (save 2 minutes)
Repeat cycle until subminute —
setup is achieved
Reduce Setup Times
JIT Reduced Waste at Hewlett-Packard

Waste Reduction (%)

Setup Time 20%
Scrap 30%
Finished Goods
Inventory 30%
Space 40%
Lead Time 50%
Raw Material
Inventory 50%
Work-in-Process
Inventory 82%
0% 20% 40% 60% 80% 100%
Just-in-Time Success Factors
Suppliers
Employee
Layout
Empowerment

Quality
JIT Inventory

Preventive
Scheduling
Maintenance
Advantages &
Disadvantages
of JIT
 Just in Time Control System
• Advantages:
1. Decreases inventory costs.
2. Improves production efficiency.
3. Points out quality problems quickly.
4. Improves coordination of different
systems.
5. Improves relationships with vendors.

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 Just in Time Control System
• Disadvantages:
1. May result in increased worker idle time.
2. May decrease production rate.
3. May not respond quickly for varying
demands over time.
4. May result longer idle time when
breakdowns occur.
5. Suppliers must react more quickly.
THE END